Mergers and Acquisitions, IT management, Mergers and Acquisitions, MSP, Content, Private equity

Tyto Athene Acquires AT&T’s Government Solutions Inc

Full-service systems integrator Tyto Athene has acquired AT&T Government Solutions Inc (GSI), which comprises AT&T’s Department of Defense IT professional services business and select other contracts. Terms of the deal were not disclosed.

This is M&A deal number 162 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

AT&T and Tyto also announced they would team up to pursue opportunities in the DoD IT professional services market.

Tyto Athene Acquires AT&T's Government Solutions Inc.

Based in Herndon, Virginia, Tyto provides design, installation and support of voice, data and security networks for customers in the federal government, DoD, state and local governments, communities, first responders and other organizations in the United States and other countries.

Tyto was created in August 2018 when Arlington Capital Partners acquired the government solutions division of Black Box Corporation. In 2019, Tyto acquired Island Information Technology Consultants, a provider of unified communications solutions to the intelligence community.

The combination of Tyto and GSI creates a pure-play provider of IT professional services and solutions to critical U.S. government agencies.

Following the deal, Tyto says it will have approximately 1,2000 employees working out of 18 offices in the United States and other countries. The transaction will enhance Tyto’s ability “to address the rapidly evolving requirements of technology-enabled digital transformation and joint all-domain operations as a critical element of the U.S. national defense strategy,” the company said.

Tyto Acquires GSI: An Exciting Combination

Chris Meilhammer, President and COO, Tyto Athene
Chris Meilhammer, President and COO, Tyto Athene
Anne Chow, CEO, AT&T Business

Chris Meilhammer, president and COO of Tyto Athene, commented on the deal:

“We are thrilled to announce that we have entered into a definitive agreement to acquire AT&T GSI and look forward to joining forces with the GSI team. We believe that the cultures of Tyto and GSI are highly complementary as both are focused on delivering superior solutions to the customer and mission.”

Anne Chow, chief executive officer, AT&T Business, added:

“Divesting these assets aligns with our strategy to support and serve our public sector customers with our industry leading networking solutions. We remain firmly committed to enabling our clients’ success across the Public Sector, including Defense, Civilian, National Security and Public Safety agencies, and helping them modernize their infrastructure in support of their missions. We look forward to the opportunity to work with Tyto Athene to meet the needs of our Federal customers.”

Carl Tegen, an executive of AT&T’s DoD professional services business, said:

“The GSI leadership team is excited about the opportunity to combine with Tyto as it will enhance our ability to transform our clients’ missions as well as provide freedom to expand into adjacent markets. Our stakeholders can rest assured that GSI, as part of Tyto, will continue to provide our current and future government customers with the highest quality innovative services and solutions.”

Michael Lustbader, a managing partner at Arlington, said:

“We are excited for the combination of Tyto and GSI to create a digital transformation company that has the size and breadth to meet the needs of the combined customer set. This transaction continues Arlington’s long history of partnering with large corporations to execute complicated carve-outs in an effort to build industry leading companies through strategic M&A. We look forward to supporting the growth of the combined business.”